4h
The currency pair GBP / USD, after dropping from the correction level of 23.6% - 1.3067, worked in favor of the British currency. However, today, September 25, the fall in quotations may be resumed, and the pair may return to the Fibo level of 23.6%. Fixing the quotes under the correction level of 23.6% will increase the probability of further falling in the direction of the next Fibo level of 0.0% - 1.2662. Great importance in the coming weeks will be played by any changes and information related to the negotiations on the UK's withdrawal from the EU. It is these events that can contribute to the further fall of the pound.
The Fibo grid is built on extremes from April 17, 2018, and August 15, 2018.
1h
On the hourly chart, the pair executed a reversal in favor of the US dollar, not reaching the Fibo level of 23.6% - 1.3175 several points. At the moment, the pair has already fallen to the correction level of 38.2%. Thus, the closing of quotations under this level will allow us to expect the continuation of the fall in the direction of the next Fibo level of 50.0% - 1.3042. Brewing divergences are not observed today. The pair's exit from the correction level of 38.2% will work in favor of the British currency and will allow some growth in the direction of the corrective level of 23.6% - 1.3175.
The Fibo grid is built on extremes from September 5, 2018, and September 20, 2018.
Recommendations for traders:
Purchases of the GBP / USD currency pair can be carried out with a target of 1.3175 and a stop loss order under the correction level of 38.2% if the Fibo level breaks 1.3101 (hourly chart).
The GBP / USD currency pair can be traded with a target of 1.3042 and a Stop Loss order above 38.2% if the pair completes closing below the Fibo level 1.3101 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com